All articles tagged with #housing supply
Originally Published 23 days ago — by CNBC
November home sales in the US saw a slight increase of 0.5% from October but remained 1% below November 2024, with supply declining and prices reaching record highs, driven by high mortgage rates and limited inventory, while affordability concerns persist despite wage growth.
Originally Published 26 days ago — by The Washington Post
Rent control policies, despite their popularity among populists, tend to worsen housing affordability by reducing supply, discouraging maintenance, and increasing initial rents, as evidenced by examples from Minneapolis, St. Paul, Los Angeles, and international cases. Cities repeatedly implement these policies, often leading to negative outcomes like decreased building permits and higher initial rents, with some regions like Argentina experiencing rent drops after abolishing controls. Experts warn that rent caps are counterproductive and suggest alternative approaches to address housing affordability.
Originally Published 2 months ago — by CNBC
Rent growth for single-family homes has slowed to its lowest in 15 years, rising only 1.4% in August, with regional differences and a cooling in multifamily apartment rents due to increased supply. High-end properties are faring slightly better, but overall, the market shows signs of moderation after a period of rapid growth.
Originally Published 5 months ago — by MarketWatch
The article explains that the housing affordability crisis in the U.S. is primarily due to a long-term housing shortage and rising home prices, rather than solely high interest rates set by the Fed. While elevated mortgage rates contribute to the problem, structural issues like limited supply and high demand are the main factors. Fed policies influence mortgage rates indirectly, but addressing the crisis requires broader efforts including increasing housing supply and wage growth.
Originally Published 5 months ago — by Axios
The Senate Banking Committee has unanimously advanced a significant bipartisan housing bill aimed at increasing housing supply by reducing zoning and building regulations, providing grants and loans for low- and moderate-income homeowners, and streamlining environmental reviews, reflecting a rare consensus on addressing the U.S. housing crisis.
Originally Published 6 months ago — by CNBC
Sales of new homes in the U.S. plummeted by 13.7% in May, reaching the lowest level since 2019, due to high mortgage rates and declining consumer confidence, leading to a significant increase in housing supply to a three-year high.
Originally Published 6 months ago — by CNBC
Home prices in the US are cooling faster than expected due to rising supply and declining demand, with a notable slowdown in price increases across many markets, driven by higher mortgage rates and a constrained housing supply, though prices remain above pre-pandemic levels and major declines are unlikely.
Originally Published 7 months ago — by Wolf Street
Demand in the housing market has plummeted, with mortgage applications dropping 39% from 2019 levels, leading to increased housing supply as homes sit longer on the market. Despite mortgage rates stabilizing around 6.9%, high home prices, which surged during the Fed's rate repression in 2020-2022, continue to suppress demand. The collapse in mortgage originations has also impacted the mortgage industry, with significant layoffs. Many potential homebuyers are waiting for prices to fall, incomes to rise, or rates to decrease, keeping the market frozen.
Originally Published 1 year ago — by Axios
Mortgage rates have risen following President-elect Trump's victory and are expected to remain high, according to Redfin's Chen Zhao. Despite Trump's campaign promises to slash mortgage rates and ease building regulations, these are not directly controllable from the White House. Plans to make federal lands available for development could increase housing supply, particularly in the Mountain West, but the impact depends on the specifics of land availability. Trump's focus on mass deportations may affect labor supply for home building, but immigration is not a major factor in the current housing supply crunch.
Originally Published 1 year ago — by Fox Business
A study shows that homes in nearly half of the 50 states now require a six-figure salary to afford, marking a significant increase since Biden took office. The median price for a home is $402,343, requiring an annual income of $110,871, a 46% increase from January 2020. Factors such as limited housing supply, rising home prices outpacing wage growth, and elevated mortgage rates contribute to the affordability crisis. Housing affordability is expected to be a key issue for voters in the 2024 presidential election, prompting Biden to unveil initiatives aimed at improving affordability, including tax credits for first-time homebuyers and efforts to build and renovate more homes.
Originally Published 1 year ago — by CNBC
Housing affordability has become increasingly challenging for Americans due to factors beyond high mortgage rates, with the typical household now needing to earn about $106,500 annually to afford the typical home, an 80% increase from 2020. The disconnect between housing costs and wages, along with tight housing supply and restrictive land-use and zoning regulations, are contributing to the issue. Experts suggest that easing zoning restrictions and increasing housing density could help alleviate the affordability crisis, with some areas already seeing a surge in new construction due to relaxed zoning rules.
Originally Published 1 year ago — by The White House
The Biden-Harris Administration has announced new actions to boost housing supply and lower housing costs, including bolstering federal programs for affordable housing, supporting manufactured housing communities, and promoting fairer rental markets. These actions aim to create tens of thousands of affordable homes, make it easier to finance the purchase of manufactured homes, and clarify banned non-rent fees in HUD-assisted properties. The Administration is also providing new resources to prevent unfair evictions and ensure tenants' rights for military service members.
Originally Published 2 years ago — by Business Insider
Median asking rents in the US have experienced their largest year-over-year drop since February 2020, according to a report by Redfin. The surge in housing supply has led to an increase in rental vacancies, prompting landlords to offer more concessions to attract tenants. While this may be good news for renters in the short term, Redfin cautions against expecting a broader rent drop in the coming years, as the supply of single-family homes remains limited. Additionally, larger rental units may see higher prices due to the demand from growing families and the popularity of remote work.
Originally Published 2 years ago — by Fox Business
Fannie Mae predicts that mortgage rates will continue to drop in the coming years, reaching 6.9% for the 30-year mortgage by 2025. This gradual decline in rates is expected to lead to a modest rebound in home sales, with volumes projected to increase from 4.8 million in 2023 to 5.3 million in 2025. Fannie Mae also forecasts a mild recession in 2023, with a decline in GDP, while housing supply is expected to remain limited. The decline in mortgage rates has already resulted in lower monthly payments for homebuyers, offsetting the increase in home prices.
Originally Published 2 years ago — by Fox Business
Mortgage rates have continued to drop for the fifth consecutive week, enticing buyers back into the market. However, the shortage of affordable homes remains a significant issue. Pending home sales have slumped to their lowest level in 20 years, and limited housing inventory is preventing housing demand from being fully satisfied. Despite the uncertainty surrounding the Federal Reserve's monetary policy, economists predict a continued drop in mortgage rates. The new conforming loan limits for 2024 allow homebuyers to obtain larger mortgages backed by Fannie Mae and Freddie Mac, providing potential opportunities for refinancing and purchasing homes at the higher end of the new limit.